“Normally we don’t like to kiss and tell. But we have two main ideas,” Herman told Business First. “We have been trying to grow at a methodical pace regionally, but this will allow us to build 10 to 12 new stores in the next five years.”

The stores, he said, will be in Colorado, Texas or Arizona.

The company offered equity, debt and options through FIDUS Securities LLC, which took a $900,000 finder’s fee on the sale. FIDUS Securities is part of FIDUS Partners and specializes in advisory and capital market transactions for middle-market companies with values up to $500 million in the food, franchise, businesses services, defense and other industries. The company counts FAO Schwartz, Red Robin Gourmet Burgers, Textron and several other companies as clients.

Herman said Dion’s and FIDUS worked closely for a year and a half on the deal.

“It’s a lengthy process because we are so focused on our brand, and finding someone who can help us move forward had to be methodical,” Herman said. “Very few people meet our standards, our requirements, for who we would work with.”

The issuer is Peter DeFries Corp., which is the parent company of Dion’s Pizza, according to the documents. Herman said Peter DeFries Corp. will maintain control of the company.

Dion’s started as a sandwich shop in Albuquerque in 1978. Since then, it has grown to a large regional chain with 20 restaurants in New Mexico, Colorado and Texas.

The company will now be able to expand its ownership opportunities to long-term employees who are “a very small group of people that have been here a long time,” Herman said.

According to the company’s Form D filing with SEC, the company offered and sold $10 million in equity, debt and options, warrants and other rights to acquire ownership in the company. The company said in its filing that the offering is not part of a merger or acquisition.

The minimum investment from any outside investor was $459,163, according to the documents. The company did not disclose the names of the three people or entities that invested the $10 million.

Though the deal was a success and the company raised the full amount it offered, Herman said he is not sure if Dion’s will make another offering.

“It’s hard to say,” he said. “That will be guided by our vision and our values, and keeping Dion’s a New Mexico favorite, where you can trust the people and the quality.”